Lesson 1.1.2
1.1.2 Economic agents, factors of production and rewards Quiz: OCR Economics, Unit 1
20 questions
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Lesson 1.1.2, Economic agents, factors of production and rewards: 20 multiple choice questions for the OCR Economics (H460), Unit 1: Introduction to Microeconomics, written with Revision Ninja.
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The 20 questions
-
What is the primary economic objective of a rational consumer?
- Maximising profit
- Maximising revenue
- Maximising utility
- Maximising welfare
-
What is the economic reward or return for the factor input land?
- Rent
- Profit
- Interest
- Wages
-
What reward is earned by the owners of physical capital?
- Interest
- Wages
- Profit
- Rent
-
What factor reward accrues to an entrepreneur for taking business risks?
- Interest
- Wages
- Rent
- Profit
-
Which factor of production receives wages as its income reward?
- Land
- Capital
- Enterprise
- Labour
-
What is the main objective of the government as an economic agent?
- Maximising tax revenue
- Maximising profit
- Maximising social welfare
- Maximising personal income
-
Which factor of production consists of man-made aids to production?
- Land
- Enterprise
- Labour
- Capital
-
What factor of production includes all natural resources on or under the earth?
- Capital
- Enterprise
- Labour
- Land
-
Factory machinery used in car assembly is an example of which factor of production?
- Capital
- Land
- Enterprise
- Labour
-
Crude oil extracted from the North Sea is classified under which factor of production?
- Capital
- Labour
- Land
- Enterprise
-
A local council providing state education acts as which economic agent?
- Household
- Firm
- Consumer
- Government
-
What is a key non-monetary objective for a worker as an economic agent?
- Profit maximisation
- Market share expansion
- Job satisfaction
- Dividend growth
-
Organising the other three factors of production and taking risks is the function of what?
- Capital
- Land
- Enterprise
- Labour
-
A bakery buys an industrial oven. How is this oven categorised?
- Consumer good
- Capital good
- Land input
- Labour resource
-
A worker earns £300 wages and £50 interest. What is their total factor income?
- £250
- £350
- £500
- £300
-
Improving worker skills through training directly increases which factor's quality?
- Capital
- Land
- Labour
- Enterprise
-
Which of the following is classified as a renewable land resource?
- Coal deposits
- Iron ore
- Crude oil
- Solar energy
-
If a firm spends £100,000 on new machinery instead of saving, what is the interest lost?
- Sunk cost
- Fixed cost
- Marginal cost
- Opportunity cost
-
In traditional economic theory, what is assumed to be the primary goal of firms?
- Utility maximisation
- Profit maximisation
- Revenue maximisation
- Welfare maximisation
-
The demand for factors of production depends on demand for final goods, known as what?
- Composite demand
- Derived demand
- Effective demand
- Joint demand
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